Tolerated Trend Lines

Hi Folks,
I'm here to write about our own trading system. It is "Tolerated Trend Lines".
It is coming from Multi-Time-Frame interactions and Price Action combinations.

We believe that "Price Movement Structure" has a fractal geometry. We can see this concept all over the market and there are many strategies which are developed based on this concept such as Elliot Waves or Andrews' Pitchfork. When we come to trend lines, there are same interactions between Time-Frames as viewing window of traders to Market World that makes it looks complicated despite the great order. Each trader has his/her own window. There are day traders, scalpers, long time/period traders, .. . Hence, we will see tolerations over price movements for all market analysis concepts and strategies. Here we are going to find a best way to draw Trend lines based on Price Movement Structure concept with Toleration approach.

1) How we prefer to draw a trend line?
It has to be:
Up trend->> Lower Low to Lower CLOSE
Down trend->> Higher High to Higher CLOSE





More Examples:






To be continued ...

for next step, we need to see how time-frames interacts and cause price toleration from Trend Line.
for example, when price moves out of a trend-line and comes back there is a deviation from trend-line that we name it Toleration. As we know, there are positive and negative tolerations around a measurement that for our measurement it is price movement and rejections from Trend Line. Considering Positive and Negative tolerations, There will be a Toleration Zone around Trend Line that we use simple FIBO channel with a two levels -2 , 0 to illustrate that zone.

Now examples of toleration. It has different names. Like breakout or fake breakout, .. .

1) As we know from Trend-Line drawing (previous post), it will be from low to Close of candle as image↓

2) Some where price may broke line and comes back or makes another high (considering that this example's trend line is bullish).

3) Now we need to draw a second line parallel to new toleration lien but in other side of main trend line and same distance.



SIMPLE WAY(Using FIBO Channel)
1) Draw a FIBO channel as Trend Line from Low to Close

2) Change FIBO Channel setting. Delete all levels and make two level -2, 0


3) Follow Brilliant result in future



To be continued …

all trend lines need to be drawn from right to left ....as that enhances most recent price action ........as said many years ago by tom demark
( one of the original market wizards )

great new thread btw mebr

Thanks for reply, we developed a new window to old concept and as we see this vision is much more effective than previous angle of views. Drawing a tend line has many methods. Hence, we believe limiting a concept to someone's achievements is not good idea as he/she did broke this kind of approach by his time and through his new idea.

I think better rule is most profitable rule. Market is the best judge of methods and strategies. Our method is brilliant and we are sure this is start of a big movement for new Market Analysis methods based on Trend Line which will be a NEW STYLE. Let's go ahead and use this method to see more hidden points/prices on charts.

Definitely I love the idea